At Every Output Level, a Firm's Short-Run Average Cost (SAC)

question 98

Multiple Choice

At every output level, a firm's short-run average cost (SAC) equals or exceeds its long-run average cost (LAC) because:

• A) diminishing returns apply in the short run.
• B) returns to scale only exist in the long run.
• C) opportunity costs are taken into account in the short run.
• D) there are at least as many possibilities for substitution between factors of production in the long run as in the short run.
• E) none of the above

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Definitions:

Cod Supply Curve

Assuming this is a typographical error for "Cost Supply Curve," but if referring specifically to cod (the fish), it's not a standard economic term, thus NO.

Cod Fishery

The industry or practice of catching cod fish, often subject to regulations due to overfishing concerns.

Federal Government

Refers to the national government, and the central authority overseeing an entire country, responsible for areas like national defense, foreign policy, and federal taxation.

Cod Fishery

The industry or practice of catching cod fish, often subject to regulations and quotas due to sustainability concerns.